This document evaluates the non-gaming amenities proposed by Lakes Entertainment for a gaming facility in Sumner County, Kansas. It discusses the challenges faced and focuses on how the amenities will promote tourism, create jobs, and maximize gaming revenue. Raving Consulting assesses the proposed amenities compared to their minimum requirements and potential enhancements. They also provide a marketing matrix analysis of Lakes Entertainment's plans, giving them an above average score of +6. Revenue and employment projections are given for different amenity scenarios.

1. Evaluation of the Ancillary
Non-Gaming Amenities Proposed by
Lakes Entertainment for the Gaming
Facility Located in the South Central
Zone, Sumner County, KS
Prepared By:
Dennis Conrad, President and Chief Strategist
Scott Cooper, Lead Project Consultant
Raving Consulting Company

2. Challenges
1. Becoming familiar with the 2008 history of the Kansas
casino license bid process and the kinds of proposals
(especially the non-gaming amenity components to the
proposals) that were put forward in 2008.
2. Not duplicating any of the voluminous information
already compiled or the extensive consulting work
already performed in 2008.

3. Challenges
3. With the number of bidders quickly reduced from five
bidders (when Raving was first engaged) to two (one
each in the Northeast and South Central Zones), it
became necessary to create an alternative method of
assessing non-gaming amenity value for the State of
Kansas, with comparisons BETWEEN bidder
packages no longer possible.

4. Challenges
4. The previous PROBE consulting report, while full of
some instructive data, did not appear to offer the Board
enough position-taking consulting opinions that would
strongly suggest which gaming amenity packages
might be best for the State of Kansas (answering the
question as so well put by one Board member, “What
decision would you make if you were us?).

5. Focus
1. The breadth and scope of market
2. How the non-gaming amenities proposed create
and promote tourism
3. Jobs creation
4. How the non-gaming amenities proposed
translate into maximizing gaming revenue

6. The Raving Consulting Team
Dennis Conrad – Founder, President, and Chief Strategist of Raving
Consulting
Dennis has 34 years of gaming industry experience and has held a number of
senior level positions for major gaming companies. He is considered one of the
gaming industry’s marketing experts and preaches common sense, meaningful
marketing principles and customer focus.
Dennis’ company, Raving Consulting, has worked with scores of casinos around
the world over the past 11 ½ years. Raving specializes in casino marketing,
casino customer service program development, strategy development, casino
conferences, and access marketing for gaming vendors. Raving has executed
numerous marketing assessments for casino companies and helped many of
them develop strategic marketing plans, which often have included how to
leverage existing casino/hotel amenities.

7. The Raving Consulting Team
Scott Cooper – Consultant
Scott has almost 30 years of experience in the gaming industry with extensive
expertise in opening nine start-up projects in six new jurisdictions, as COO of
several gaming companies, and he has worked at many properties as General
Manager, responsible for the overall operation of these land based, riverboat,
racino, and Native American casinos.
All of the start-up experience has been in a "locals" type environment. In
addition, Scott has led the operational development of four major expansions of
existing casinos, ranging in infrastructure investment from $110m to $400m.

8. The Raving Consulting Team
Scott Cooper – Consultant (continued…)
Inherent with each start-up and existing casino expansion project was the need
to provide hands-on leadership, the creation/execution of the business plan,
hiring and training of the management staff, development of the internal
controls, the establishment of a working relationship with local governments
and state regulatory agencies, and the responsibility to create and execute each
property's marketing programs.

9. Methodology
1.Gather Information
2.Decide what information was most
pertinent
3.Draw consulting insights
4.Share the consulting insights in a simple,
clear, logical way

10. Raving Minimum
Since there is only one bid for the South
Central Zone, Raving will address the
critical questions of this project by first
determining what, in our opinion, the basic
core level of amenity development (the
Raving Minimum) should consist of, as
follows:

11. Raving Minimum
• Hotel – A hotel of at least 100 rooms with a level of
finish consistent with the mid-range hotel product in the
area. The hotel should include at least a small sized
fitness center.

12. Raving Minimum
• Food – A mix of food product that provides a sufficient
variety of outlets to offer customers food options. Also, the
quality of food product should be such that customers will
stay on site through a meal period to maximize their time at
the facility. At a minimum, this food product should
include a buffet (250 seats), a higher end product such as a
Steakhouse or Italian restaurant (80), a casual outlet that
provides breakfast, lunch, and dinner (100), and a deli type
outlet (30). Food should be available 24 hours per day.

13. Raving Minimum
• Beverage – The casino should have a minimum of 2
bars. One should be large enough to be able to offer live
entertainment. One of the bars should have bar top slot
machines.

14. Raving Minimum
• Convention/Group Meeting Space – The facility should have
convention/meeting space of sufficient square footage to
accommodate a minimum of 400 to 600 customers theater style
and approximately 350 customers for a sit down dinner event.
This roughly equates to building convention/meeting space
totaling approximately 7,000 sq. ft. This space should also be
flexible to provide smaller break out rooms, either in the main
ballroom area or in dedicated smaller rooms adjacent to the
main ballroom. If this space is to be used as a multi-purpose
venue, then the size of the ballroom should be increased to
accommodate a minimum of 1,000 customers or 13,000 sq. ft.

15. Raving Minimum
•Pool Area – The facility should have a pool area.
•Parking – The facility should have a minimum of 1,800
parking spaces for customer self -service parking, 250
spaces for valet, 350 for employee parking, and a portion
of the customer parking should be able to accommodate
RV parking.
•Retail /Gift Shop – The facility should have dedicated
retail space of a minimum of 600 sq. ft.

16. Amenity
Raving Minimum Amenity Score
"Score"
‐3 to +3 Comments
Hotel = 100 Rooms 0
Food/Restaurants (4) 0
Casino Bars (2) 0
Convention/Mtg. Space (7,000 sq.
ft.)
0
Other Amenities – Parking 0
Other Amenities – Retail (600 sq.
ft.)
0
Total 0
Raving Minimum Chart

17. Amenity
Phase I ‐ Built as proposed
Chisholm Creek Amenity Score
"Score"
‐3 to +3 Comments
Hotel = 100 Rooms ‐ 3 Not planned in Phase I
Food/Restaurants ‐ 1 # seats low, need 1 more outlet
Casino Bars ‐ 2 + 1 for service bars
Convention/Mtg. Space ‐ 3 Not planned in Phase I
Other Amenities ‐ Parking + 1 More than Raving Minimum
Other Amenities ‐ Retail + 1 Larger than Raving Minimum
Total ‐ 7
Chisholm Creek Amenity Chart

18. Potential Amenity Chart
Amenity
Potential Amenity Score For Chisholm Creek Project
"Score"
‐3 to +3 Comments
Hotel = 100 Rooms + 0 Assume well appointed
Hotel > 200 Rooms + 3 Assume well appointed
Food /Restaurants + 3 w/add’l outlets, seating
Casino Bars + 3 w/at least 2, live entertain
Convention/Mtg. Space + 2 w/at least 15k sq. ft.
Other Amenities ‐ Parking + 3 With parking structure
Other Amenities ‐ Retail + 2 Assume add’l stores
Entertainment Venue + 2 1.8k seats, multi‐purpose
RV Park + 2 50 space, full hookups
Truck Parking + 2 Room for 30‐50 trucks
Spa ‐ Fitness + 2 w/8 rooms, 600sf fitness
Pool + 1 Indoor preferred
Total +25

19. Potential Marketing Impacts
As important as the scope and quality of casino non-gaming
amenities are to a successful casino development project, so too
is effective marketing of those amenities. Great amenities with
lousy marketing will not optimize visitation or gaming revenue.
Likewise, a paucity of amenities, or a casino with sub-standard
amenities, can be somewhat overcome by excellent marketing,
especially if it includes outstanding casino customer service.

20. Potential Marketing Impacts (Continued…)
Thus, Raving felt it was instructive to examine the stated
marketing intentions of Lakes Entertainment as expressed in its
responses in the section “Additional Information” of its
submitted Performance Matrix, as well in Lakes’ comments in
its bid presentation to the Board on September 16, 2009. The
goal here was to attempt to determine, as a positive or negative
potential, marketing impact on Lakes’ proposed non-gaming
amenities. Knowledge of Lakes’ current amenities and
marketing strategies at its other casino properties, both current
and past, also contributed to the discussion that follows.

21. The Raving
Marketing Matrix

22. Marketing Elements Evaluated
•Pre-opening Marketing Spend
•Brand
•Marketing Reputation
•Database Marketing/VIP Player Focus
•Integrated Marketing
•Food as a Marketing Tool
•Tourism and Hotel Partnerships
•Bus Marketing
•Advertising Efficiency
•Listening to Guests
•Other Factors

23. Marketing Elements Evaluated
Pre-opening Marketing Spend – is the marketing spend
adequate and targeted to create awareness of the new casino
facility, including its amenities?
-1 Inadequate – marketing spend too little (or too much and
wasteful) or not focused on appropriate opening goals
0 Adequate – marketing spend reasonable and mostly focused
on appropriate goals for opening
+1 Superior – marketing spend reasonable, measurable and
highly focused on pre-opening goals

24. Discussion of Lakes
Entertainment Marketing
Plans for Chisholm Creek
Casino Resort

25. Pre-Opening Marketing Spend
Lakes’ expressed pre-opening marketing budget is adequate at
$1.05 million. The focus on potential employees, potential
customers and tourism industry insiders is particularly
appropriate. The building of a pre-opening website is positive as
are Lakes’ plans to use a pre-opening mix of online, direct and
new media. Most importantly, Lakes plans to focus on “known
gamblers” and has an outstanding history of new casino
openings including its most recent two openings at Red Hawk
Casino in California and Four Winds Casino in Michigan.
Raving Marketing Matrix Grade = +1

26. Brand
Lakes would ostensibly be entering the Chisholm Creek
project with no real recognizable brand identity in the
area, either as “Lakes” or “Chisholm Creek.” Lakes does,
however, recognize its need to build an effective brand
and addresses that adequately in its post-opening
marketing discussion.
Matrix Grade = 0

27. Marketing Reputation
Lakes (and its predecessor, Grand Casinos) has an
outstanding marketing reputation in the gaming industry.
It is known for focusing on marketing that matters, a
management “team” approach to marketing, and a
willingness to make appropriate marketing changes when
necessary to achieve desired marketing results.
Matrix Grade = +1

28. Database Marketing/VIP Player Focus
Lakes shows an uncommon appreciation of database
marketing and VIP player segmentation through its stated
pre-opening database building, loyalty club emphasis,
use of its high end restaurant for VIP gatherings,
database analysis focus and other elements that highlight
understanding of the 20/80 rule (20% of customers
account for 80% of revenues).
Matrix Grade = +1

29. Integrated Marketing
Lakes keenly understands marketing as a “way of doing
business” and its stated goal of “continually training, and
enforcing process improvement” pointedly speaks to
effective integrated marketing. Lakes’ casino properties
have been known for having excellent customer service
and it should be assumed that Chisholm Creek would be
the same.
Matrix Grade = +1

30. Food as a Marketing Tool
Although Lakes has proposed to open with restaurant
amenities less than the Raving Minimum, it can be
assumed that the Lakes’ food product will be high
quality, based on Lakes history of having excellent
food and the stated central role of food in Lakes’
marketing discussion for Chisholm Creek.
Matrix Grade = 0

31. Tourism and Hotel Partnerships
In its pre-opening marketing discussion Lakes speaks to
communicating with “tourism industry insiders” and in
its bid proposal presentation to the Review Board it
mentioned providing shuttle bus service to Chisholm
Creek from Wichita-area hotels. However, this falls short
of a strong commitment to this marketing tool.
Matrix Grade = 0

32. Bus Marketing
There was no overt mention by Lakes to creating charter
bus programs for potential out of market visitors to
Chisholm Creek (perhaps because of the lack of a
hotel in the Phase I proposal), but Lakes successfully
utilized charter bus programs at other properties in the
past.
Matrix Grade = -1

33. Advertising Efficiency
Lakes displays a keen understanding of the need for
impactful advertising prior to a casino opening, the
importance of using advertising to create a brand image
and the need to utilize both new and traditional media in
successful advertising campaigns. It has the reputation of
using advertising intelligently to drive trial.
Matrix Grade = +1

34. Listening to Guests
This is perhaps one of Lakes greatest strengths and is
stated well in its marketing discussion. Lakes is known
for using multiple methods of guest research (both
formal and informal) to discover what its core customers
are saying, and then using that information to improve
performance and guest satisfaction.
Matrix Grade = +1

35. Other Factors
In its proposal discussion and stated marketing plans, Lakes
touched on a number of “other factors” that would indicate it
understands “marketing opportunities.” One was a mention of
the traveler on I-35 near Chisholm Creek (indicating an
appreciation of directional and billboard signage). Another was
the clear understanding its table game product and the
marketing advantage it creates with the Oklahoma table game
customer, where there are inferior “player banked table games.”
It seems Lakes is very aware of “other factors” that might create
marketing leverage for Chisholm Creek.
Matrix Grade = +1

36. RAVING MARKETING MATRIX AS APPLIED TO LAKES
ENTERTAINMENT AND ITS CHISHOLM CREEK
PROPOSAL
Categories Lakes Entertainment Score
Pre‐Opening Marketing Spend +1
Brand 0
Marketing Reputation +1
Database/Player Development Focus +1
Integrated Marketing +1
Food 0
Tourism 0
Bus Marketing ‐1
Advertising Efficiency +1
Listening to Guests +1
Other +1
TOTAL +6

37. Raving Matrix Scoring Scale
-4 to -11 Inadequate – unlikely to achieve additional
marketing impact on financial performance
-3 to +3 Adequate – likely to achieve an average, mostly
adequate marketing impact on financial performance
+4 to +11 Superior – likely to achieve a superior
marketing impact on financial performance

38. Revenue and Jobs Comparisons as Related to Various Amenity Scenarios
Category Total $
Gaming
Revenue
Hotel
Revenue
Restaurant
Revenue
Beverage
Revenue
Retail
Revenue
Entertainment
Revenue
Number of Amenity
Related Jobs
Total
Jobs of
Project
Hotel F/B Retail
Applicant‐Phase 1 ‐ 1st
year, '13 $ 121 $ 10.4 $ 2.0 $ 1.3 240 5
876
(FTE)
Wells/Cummings
avg. Phase 1 ‐ 1st
year, '13
$ 154
Wells/Cummings avg.
w/Raving Minimums
Phase 1 ‐ 1st year, '13 $ 161
If Raving Minimums
Were Built Phase 1 $ 3.3 (100
rooms)
$ 11.0 $ 3.0 $ 1.2 $ 1.2 60 350 5
1,026
(FTE)
(+150)
Applicant ‐ 2015
$ 130 $ 11.2 $ 2.2 $ 1.4 241 5 880 (FTE)
Wells/Cummings avg. ‐
2015 $ 174
Raving Projections
2015 $ 5.0 (150
rooms)
$ 12.0 $ 4.0 $1.6 $2.0 75 350 5
1,076
(+196)

39. Consultants’ Conclusions
• Lakes Entertainment’s proposed non-gaming ancillary
amenity package for its Chisholm Creek project is weak
and in its current proposed mode is likely to fall short of
maximizing gaming revenue and tourism for the State of
Kansas.

40. Consultants’ Conclusions
• The addition of a 100 room hotel, another restaurant
and two casino bars (with modest entertainment) would
greatly enhance the Chisholm Creek project’s ability to
maximize gaming revenue and tourism for the State of
Kansas.

41. Consultants’ Conclusions
• Lakes Entertainment’s marketing savvy and experience
is a positive and likely enables Lakes to achieve
somewhat more benefit from its non-gaming amenity
package than what would otherwise be realized from a
less impactful marketing program or philosophy.

42. Consultants’ Conclusions
• There appears to be some potential upside for Chisholm
Creek from a tourism generation and revenue
maximization perspective if it were able to attract and
accommodate some of the many truckers passing near
the facility, effectively implement a charter bus program
targeting potential casino goers 100 miles away or
further, or leverage its “real table games” (sort of an
amenity) to steal Oklahoma table game market share.

43. Consultants’ Conclusions
• Without a more fully developed non-gaming amenity
package than the one outlined by Lakes, the Chisholm
Creek facility would likely be more at risk of losing
market share should additional gaming be approved in
the Wichita area or should significant non-gaming
amenity development occur in existing Oklahoma
casinos.

44. Consultants’ Conclusions
• In other gaming markets, the 21-35 year old customer
base, while not having the disposable income of older
casino customers, nonetheless have indicated a desire for
more of an “experience” (concerts, lively table games,
things to do, ability to “party,” etc.) in their casino visits
– there appears to be a risk here that these young
customers will be “disappointed” in the Chisholm Creek
experience and its apparent lack of things to do other
than to gamble.

45. Consultants’ Conclusions
• Lakes’ past track record of quick non-gaming amenity
build out (after opening its other casinos) is impressive
and likely should merit some consideration as a future
indicator of Lakes’ possible future amenity addition
intentions and speed of implementation for Chisholm
Creek.

46. Thank You